US District Judge Vince Chhabria Refused To Block The Decision By Pres. Trump To Discontinue Subsidies To Obama Care.

US District Judge Vince Chhabria On Wednesday said in San Francisco that the federal government isn’t required to make any payments of Obama care subsidies even as litigation is unfolding over the issue. The judge refused to block the decision by Pres. Trump to discontinue subsidy payments to health care insurance companies giving him a victory over Democratic attorneys general that have frequently challenged the policies of the president in courts.

Chhabria who was appointed by former Democratic president Barack Obama also mentioned that despite the case appearing to be a close call, the administration of Pres. Trump seems to have a stronger legal argument.

The Reason For The Judgment By Judge Chhabria

Judge Chhabria Decided That An Immediate Response Demanded by the States Wasn’t Necessary As Litigation Was Still Ongoing.

Earlier this month, the Trump administration had terminated payments to insurance companies to help cover the medical expenses of low-income American families. The actions were part of several moves to repeal the signature health care law which was commonly known as the affordable care act, introduced by Pres. Obama in 2012.

Pres. Trump has been repeatedly opposed by Democratic attorneys general in the courts of law over his immigration policies, environment, and healthcare.

18 states along with the District of Columbia had requested for an immediate order to stall the move by Pres. Trump after his decision to end the subsidies that were provided stating that the case was being litigated. The argument put forward by the attorneys general stated that cutting subsidies would harm customers of insurance companies by raising insurance premiums.

The judgment passed by judge Chhabria clearly stated that the kind of immediate order demanded by the states wasn’t necessary. He also mentioned that the regulators from most states had devised responses which give millions of lower-income Americans access to better health coverage than would have been available in normal circumstances. It was also pointed out that most of the states party to the lawsuit were also following a similar policy.

What Were The Attorneys Generals Expecting From the Lawsuit

California Atty. Gen. Xavier Becerra Contended That the Decision By the President Did Not Allow Payments To Make Healthcare Affordable.

The lawsuit which is being headed by California Atty. Gen. Xavier Becerra mentioned in a statement that the decision by Pres. Trump does not allow payments to keep healthcare affordable. Swift action for the integration was becoming even more compelling without an emergency order to halt the actions by the president.

US Sen. Patty Murray, who is a Washington state Democrat, said that the ruling only makes it more crucial for the Senate to pass a bipartisan agreement which she had co-authored and called for authorizing the subsidies.

Does The Decision By Pres. Trump Benefits The US Economy?

Insurance Companies Have Already Increased Premiums By 34% Even As Enrollment for 2018 Begins on November 1.

A nonpartisan budget office of the Congress had noted, on Wednesday, that the proposal would benefit the American economy by $3.8 billion over the next decade by cutting down the deficit. Congressional analysts have stated that the subsidies which are presently estimated at $600 million every month, will cost the American economy $7 billion this year and is expected to grow to $10 billion in 2018.

The enrollment season for 2018 insurance policies for Obama care begins on November 1 and judge Chhabria has suggested that the states focus their attention on communicating the message which they had devised as a response to the subsidy cuts to prevent harm to a large number of Americans.

In his order, judge Chhabria also wrote that if the states were really concerned about people being scared by the thought of higher premiums, they should put an end to the yelling and rather concentrate on providing people appropriate responses.

Insurance companies have already stated they don’t benefit from the subsidies given by the affordable care act because they are passed directly to the consumers in order to reduce deductibles, copayments and other medical expenses which low-income people are required to pay out-of-pocket.

The government will be compelled to spend more by providing financial assistance to low-income Americans because the absence of subsidies on policies would compel insurance companies to increase premiums. Therefore whether the decision by Pres. Trump will benefit the economy or will leave it saddled with additional expenditure is still a matter of discussion.

The premiums for the silver plans of Obama care, which is the most popular on the individual health insurance market, have already risen by 34% for 2018 which is a sure-fire indicator that insurance companies are not in a mood to offer any discounts to Americans on healthcare bills.